New found worries over a “hard” exit from the EU has put the Pound Sterling under heavy pressure against the US Dollar. A concern over the Brexit vote of June 23rd continues to plague investors, recently because the minister of external affairs in Scottland said that UK officials seemed to be on track for a sharper split. Combined with current market sentiment, the GBP/USD touched on 30-year troughs yesterday and remains today within striking distance of that price.
As reported at 10:49 am (BST) in London, the GBP/USD was trading at $1.2940, down 0.23%; yesterday, the pair hit $1.2916. The EUR/GBP is higher at 0.8692 Pence, a gain of 0.1866% for the Euro.
Markets Look to UK GDP
Though economic data has been relatively stable since the Brexit vote, analysts say that it is political rhetoric that continues to whet market uncertainty. Finally lows after the vote, the Pound had gained 5% against the greenback, but concerns over the split have dampened investors’ appetite for Sterling. In regards to UK economic data, markets have little to ponder until Friday when 2nd quarter GDP figures are released. Currently, analysts’ consensus calls for no changes to UK economic growth, so any deviation from a flat reading could impact sentiment.